Pegasus is pleased to announce that is has signed a letter of intent with Shanghai Fei Tian Aviation Technique Co. Ltd ("Shanghai Fei Tian") for the exclusive distribution of its PH200PJ Helicopter in China.

The letter of intent contemplates a four year distribution agreement whereby Shanghai Fei Tian will distribute 50 assembled kit helicopters in years one and two and 150 fully certified helicopters in years three and four to the industrial, military and civilian markets in China.

According to statistics from officials at the China National Aero Technology Import and Export Corporation, China's demand for helicopters is expected to reach 10,000 units by 2020, creating a market value of $84billion in China.

In addition, Shanghai Fei Tian will have the first right of refusal to manufacture the PH200PJ Helicopter in China.

Robert Zummo, CEO of Pegasus, commented: "China is poised to become the world's largest single market for light helicopters in the coming decades. We anticipate significant demand being generated initially from the industrial and commercial sectors in China given the multiple applications the PH200PJ Helicopter has in these sectors."

This latest letter of intent to enter into distribution agreements follows on from the letters of intent announced earlier this month covering Brazil, Russia and the Commonwealth of Independent States.

About Shanghai Fei Tian

Shanghai Fei Tian was certified by the Civil Aviation Administration of China (CAAC) in 1998 for the repair and calibration of aviation instrumentation and radar & mechanical systems for both civilian and military aircraft. Its distribution subsidiary was subsequently set up in 2007 to market and sell fixed wing and rotorcraft aircraft in China. The company has facilities both in Lanzhou and Shanghai.

About the PH-200PJ Helicopter

The PH-200PJ Helicopter is a low-cost, easy and safe to fly, two-seat helicopter that uses pressure jet technology. The helicopter's simplified design significantly reduces the number of parts used compared to a conventional helicopter. Most notably, the PH-200PJ Helicopter has no tail rotor and therefore no tail rotor gear box, tail rotor drive or tail boom. Likewise, it has no main rotor drive system or complex transmission for the main rotor. It will be supplied in both kit and fully assembled forms.

About Pegasus Helicopter Group Plc

Pegasus Helicopter Group plc is the holding company for Pegasus Helicopters Holdings Limited and its wholly owned subsidiary, Pegasus Helicopter, Inc. The Company plans to manufacture market and sell the PH200PJ Helicopter, a two-seat helicopter that uses pressure jet technology. It is the Director's intention to market the Company's product to civilian, commercial and military markets worldwide, the Directors believing that demand for the PH200PJ Helicopter will be driven by its safety, low unit cost, low operating costs, simplicity and ease of flying.

Pegasus's experienced Board of Directors includes Charles Vehlow, who has over 25 years of experience with large helicopter engineering companies having held executive positions at both McDonnell Douglas Corporation and the Boeing Helicopter Division. He is also a West Point graduate and currently sits on the Army Science Board at the Pentagon. Pegasus's CEO is Robert Zummo who has over 40 years of experience in the aerospace, defence and automotive industries. Its Advisory Board includes former executives of The Boeing Company, the McDonnell Douglas Corporation and MD Helicopters Inc.